Russia is considering new regulations that could change the game for cryptocurrency miners. While acknowledging the rise of crypto, the country seems intent on limiting mining to industrial entities.
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Russian politicians wish to ban private individuals from mining crypto
Anton Tkachev, leading political figure recently pointed out that Russia could legalize crypto mining, but only for registered companies.
This announcement comes as crypto mining had no legal status until now in the country.
Over the years, mining giants such as BitRiver have emerged in Russia. These companies, sometimes collaborating with oil and gas producers to use their resources in the mining, could benefit greatly from this new regulatory direction.
In fact, some politicians want to accelerate this legislation to tax the income of industrial miners.
Underlining the growing importance of this industry, the Center for Economic Classifications consider introducing a category dedicated to mining. In addition, the recent creation of the Industrial Mining Association, the country’s leading industrial mining organization, confirms this trend.
Implications for the crypto market in Russia
Russia with its low energy costs and cold climate, is an Eldorado for individual miners. However, new regulations could put the brakes on their enthusiasm.
On the other hand, although crypto transactions are not yet officially recognized by the Russian state, Tkachev is optimistic that this situation will change soon. He even predicts that state-owned enterprises could soon be carrying out international cryptocurrency transactions.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.